Nomad Royalty to Acquire Coral Resources
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday August 24th
This past Friday gold was marginally positive while silver was racked for 41 cents, or 1.5%. As such, the gold silver ratio jumped 1.6% to 72.8. The Mining Stock Journal said that for now this looks to be the continuation of a pullback in the precious metals sector after the torrid move higher since mid-June. Helpfully this will serve to chase away the retail momentum chasers who piled into the mining stocks over the last six weeks and relieve the extreme overbought technical condition of the sector. For now gold, silver and the mining stocks are holding firm at an uptrend line of support. The newsletter added that the last two weeks of August often facilitates an effort by the price management team led by the Fed to cap the sector or push it lower, as trading activity will be light and a lot of investors take it easy for the last two weeks leading into Labor Day Weekend. The newsletter suggested that now is a good to make a wish list of stocks to buy if the market continues to tread water or drift lower for a couple more weeks.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning…
Nomad Royalty and Coral Gold Resources announced they have entered into a definitive Arrangement Agreement, under which Nomad intends to acquire all of the outstanding common shares of Coral for total value of approximately $45.8 million. Based on Nomad's and Coral's August 21, 2020 closing prices on the TSX and TSX Venture Exchange respectively, the Transaction represents a premium of approximately 45% to Coral shareholders. The deal includes the acquisition of the uncapped sliding-scale 1.00% to 2.25% net smelter return royalty on Nevada Gold Mines' Robertson property located in Nevada, USA, which forms part of the greater Cortez & Pipeline mining complex. Based on the current gold spot price of over US$1,940 per ounce, the applicable NSR royalty rate is currently 2.00%. Nomad Royalty trades on the TSX with NSR and on the OTCQX with NSRXF. Coral Gold trades on the TSX Venture with CLH and on the OTCQX with CLHRF. News Release
Osino Resources released assay results from ten drill holes at the Twin Hills Central. The company says significant intersections were returned in eight of the holes including very wide mineralized zones in the western portions of THC in an area referred to as “the bulge”. Holes 49 and 41 are considered exceptional for their mineralized widths of 268m at 0.60g/t and 203m at 0.74g/t. The results from these in-fill and expansion holes confirm the lateral continuity and depth extension to approximately 300m of previously identified gold mineralization at THC. Mineralization remains open down-dip and will be further tested down-dip and along strike in follow-up drilling planned for the remainder of 2020. Osino trades on the TSX Venture with OSI and on the OTC markets with OSIIF. News Release
Nighthawk Gold reported assay results for three drillholes completed at the Diversified Deposit, which is part of the Leta Arm Gold Project located within its Indin Lake Gold Property in the Northwest Territories. Results reported today included 3.59 g/t gold over 5.1 meters and 1.21 g/t gold over 16.45 meters. Leta Arm is located 16 kilometres southwest of Nighthawk's Colomac Gold Project. Nighthawk last drilled Diversified In 2018, where drilling targeted the steep northern plunge to the mineralized zones resulting in a new discovery. This high-grade discovery effectively opened the deposit to the north and highlights the untested potential between this intersection and the Lexindin deposit, 1 km to the north. Nighthawk trades on the TSX with NHK and on the OTCQX with MIMZF. News Release
Marathon Gold says the ongoing exploration program currently underway at the Valentine Gold Project in central Newfoundland will be expanded to include an additional 8,000 metres of dedicated infill drilling at the new Berry Zone. The aim of this new drilling will be to obtain sufficient density of data to support the zone’s first mineral resource estimate, expected by early next year. Marathon trades on the TSX with MOZ. News Release
And the story lines of the Northern Dynasty’s Pebble Mine continues. After a Politico article published over the weekend said the Trump is planning to block the proposed Pebble Mine in Alaska this week, Northern Dynasty released a news release calling the article an error. The company denied reports the “Trump Administration is going to return to an Obama-like approach that allowed politics to interfere with the normal, traditional permitting process.” We’ll have more commentary on these events later here on MSD in a short amount of time. So stay tuned.
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I’m Trevor Hall. Have a wonderful day. Be well.
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